Farnoosh Torabi at Mainstreet just wrote an article about the business side of opening a bakery, quoting me and mentioning/talking to many bakeries, including Sprinkles Cupcakes, Crumbs Bakeshop, Main Street Cupcakes, Baked by Melissa, Manille Bakery, Cupcakes Nouveau, and Sweet Revenge.
I thought one of the most illuminating parts of the piece was the cost breakdown for a new bakery, using Provo's The Sweet Tooth Fairy as an example:
Here’s a rundown of the cupcake shop’s start-up costs and monthly expenses:
The Small Business:
The Sweet Tooth Fairy Bake Shop
1227 S. University Ave.
Provo, Utah
Est. Jan. 31, 2009
The Start-Up Costs:
Security deposit = $3,600
Construction = $25,000
Start-up inventory =$5,000
Oven = $8,000
Pots, pans, tables and racks = $8,000
Permits = $1,000
Total start-up costs = $50,600
The Monthly Expenses:
Staffing = $3,500
Rent and utilities = $3,000
Inventory = $1,500
Insurance = $100
Rough monthly expenses = $8,100
Number of $2.25 cupcakes she must sell a day to break even: 120
I thought one of the most illuminating parts of the piece was the cost breakdown for a new bakery, using Provo's The Sweet Tooth Fairy as an example:
Here’s a rundown of the cupcake shop’s start-up costs and monthly expenses:
The Small Business:
The Sweet Tooth Fairy Bake Shop
1227 S. University Ave.
Provo, Utah
Est. Jan. 31, 2009
The Start-Up Costs:
Security deposit = $3,600
Construction = $25,000
Start-up inventory =$5,000
Oven = $8,000
Pots, pans, tables and racks = $8,000
Permits = $1,000
Total start-up costs = $50,600
The Monthly Expenses:
Staffing = $3,500
Rent and utilities = $3,000
Inventory = $1,500
Insurance = $100
Rough monthly expenses = $8,100
Number of $2.25 cupcakes she must sell a day to break even: 120
Comments
thanks!
Thanks so muc!
Running a buiness is a lot of HARD WORK, and cost money.
At the end of the day, no matter what you are selling, cupcakes, or ballons, its a business, and your bottom line is to bring in revenue.
In my pessimistic mind 120 cupakes is about what I expected.
I agree with what michelle said, the idea of opening a bakery/cafe is appealing but not the day to day running of a business...again, if I were younger maybe!
Also, the $2.25 per cupcake for 120 cupcaks doesn't add up to the $8,100...it only adds up to around $6,500 so that isn't breaking even. We are hoping to do 15 dozen a day at $2.75 per cupcake. We feel this is doable since we will be the only cupcake shop in southwest Denver and we have been in this community as a special order cupcakery for over a year now. Our name is out there and I think that definitely helps.
I love coming to your blog.It has inspired me to do what I love best..Bake cupcakes!! I am using your sight to get some useful information..thank you!!